Despite projected gains in intermodal freight, rail giant CSX Corp. projects that its third quarter earnings will be $35 million lower than the same period in 2001, largely because coal carload traffic has fallen 5%.
Richmond, VA-based CSX noted, however, that it expects combined merchandise, automotive and intermodal carloads to rise in the third quarter compared to the same period last year – with revenues from these sectors higher as well, reflecting some strengthening in the economy, the railroad said.
Revenue gains from those sectors should more than offset the decline in the coal shipments, CSX said, though total rail and intermodal operating income for the third quarter should be down slightly from the $237 million in income it posted in the third quarter last year. Overall, CSX predicts its third quarter earnings should top the 47 cents per share it reported in the third quarter of 2001.
